| Many Americans today don't have a savings | | | | Make sure you do some comparison shopping |
| account or emergency fund. I heard on the | | | | before opening an account for your emergency |
| news on recently that the Commerce Department | | | | fund to ensure that they are no minimum or |
| reported that Americans spend all the money | | | | other fees for accessing your account. A |
| they have and personal savings rates reached | | | | good source to use is |
| the lowest level since the Great Depression. | | | | |
| | | | You can start off by contributing small |
| Your emergency fund is your safety net, in | | | | amounts to your emergency fund until you are |
| case you get sick or lose your job you can | | | | able to contribute more. Start off with a |
| use your emergency savings to hold you for a | | | | contribution of at least $20 a month to your |
| few months until you can find a new job. | | | | emergency fund. Once you are able to |
| | | | contribute more to the fund do so. Make |
| Your emergency account should be separate | | | | several short-term goals for your emergency |
| from your checking or savings accounts and | | | | fund. Once you have saved enough money to |
| should only be used for emergencies such as | | | | pay one bill pat yourself on the back. Then |
| an unexpected expense, unemployment, medical | | | | keep saving until you have enough to pay |
| bills, etc. | | | | three bills and so on until you have enough |
| | | | saved to pay your bills and expenses for 3 to |
| An emergency fund should be enough savings to | | | | 6 months. |
| pay your bills for at least 3 to 6 months. | | | | |
| Money for an emergency fund should be readily | | | | Once you have reached your emergency fund |
| accessible and stored in a checking or | | | | goal it is time to start developing some |
| savings account, preferably a high interest | | | | long-term goals such as an additional savings |
| savings account such as Emigrant Direct or | | | | account and to start planning for retirement. |
| ING or a money market account where you can | | | | A great site to learn about retirement |
| make money while saving money. | | | | planning is and look under the Personal |
| | | | Finance section. |
| To determine how much money is needed to pay | | | | |
| 3 to 6 months worth of your bills do an | | | | Having an emergency fund will ensure that you |
| inventory and write down all your bills and | | | | are on the road to becoming financially |
| expenses and the monthly amount spent for | | | | secure and will prevent you from going into |
| each. Calculate the total. Use this amount | | | | debt when an unexpected tragedy happens or |
| and multiple by 3 or 6 to determine the total | | | | unexpected expenses arises. An emergency |
| amount you need to save in your emergency | | | | fund is the first step to getting out of and |
| fund. | | | | staying out of debt. |
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